State RegulationsAZ specificDifficulty 2/5
A life policy in Arizona lapsed for nonpayment and was reinstated. Under A.R.S. 20-1227, for how long after reinstatement may the insurer contest the policy on grounds relating to reinstatement?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-1227 provides that a reinstated policy may be contested only within the same contestable window the policy gives after issue - a fresh two-year period running from reinstatement - and only for fraud or material statements relating to the reinstatement. This gives the insurer a clean look at the reinstatement application.
Why the other options are wrong
- B) 3 years is the window for applying to reinstate under A.R.S. 20-1213, not the post-reinstatement contest window.
- C) No 6-month contest window exists; the statute keys the window to the policy's own post-issue contestable period.
- D) A reinstated policy is not immediately incontestable; the fresh window exists precisely to review the reinstatement application.
Memory hook
Reinstatement restarts a fresh two-year contest clock.